Qatar¿s World Cup 2022 bid win enabled it to outperform markets in the UAE as the country's exchange posted its highest close in more than two years.
Qatar leads region's markets
Qatar's World Cup 2022 bid win enabled it to outperform markets in the UAE as the country's exchange posted its highest close in more than two years.
Optimism that government spending on infrastructure for the World Cup will boost economic growth helped to push the exchange 0.5 per cent higher to 8,794.83 points.
But the UAE markets' optimism last week over Qatar's selection as World Cup host and speculation surrounding Aldar Properties' government funding has subsided. The Dubai Financial Market (DFM) General Index slipped 0.9 per cent to 1,676.18. The Abu Dhabi Securities Exchange (ADX) General Index inched 0.2 per cent higher to 2,766.27.
"Trading today was calm. Foreign institutions are on Qatar rather than [the] UAE, where volume is four times as high," said Samer al Jaouni, the general manager of the Middle East Financial Brokerage Company.
"There were some retail selling pressures and it seems it's a one-way direction on selling," he said. Volumes on the DFM have hovered about the 80 million mark from levels three times that at the height of the property bubble.
Shares in Tabreed fell 5.08 per cent to Dh1.96 on the DFM in the first day of trading after the company cut its share capital in an effort to eventually raise more money.
On the ADX, property stocks reversed last week's gains as Aldar Properties, Abu Dhabi's biggest developer and the most actively traded stock by volume in the capital, lost 2.8 per cent to Dh2.43.
Aldar last week gained the most in five weeks on speculation the builder would secure government funding.
Sorouh Real Estate fell 2.26 per cent to Dh1.73 on the ADX and Arabtec retreated 2.9 per cent to Dh2.01 on the DFM.
Elsewhere in the region: Kuwait fell 0.3 per cent to 6,803.60; Bahrain lost 0.1 per cent to 1,424.27; Oman slipped 0.09 per cent to 6,711.46, and the Saudi Tadawul All-Share Index rose 0.08 per cent to 6,461.40.